Nebius Group's Q2 Earnings Spark AI Infrastructure Stock Surge

Nebius stock skyrockets 21% after stellar Q2 earnings -- new forecast sends Wall Street buzzing

NBIS stock latest news today: Nebius Group, an AI firm based in Amsterdam, witnessed a significant surge in its stock value. This happened after the company revealed outstanding second-quarter earnings. The revenue increased by 600%, surpassing expectations. CEO Arkady Volozh has raised the revenue forecast for 2025. The company is also expanding its data center capabilities. NBIS stock latest news today: Amsterdam-based AI infrastructure company Nebius Group saw its stock soar by 21% on Thursday morning after delivering a blockbuster second-quarter earnings report that blew past Wall Street expectations and reignited investor excitement across the AI sector, as per a report. The hyperscaler's stock, which has already gained over 140% year-to-date, reported $105.1 million in Q2 revenue, a jaw-dropping 600% increase year-over-year and well ahead of the consensus estimate of $101.2 million, as per a report by Seeking Alpha. The earnings surprise marks yet another milestone in Nebius' rapid rise as a key player in the race to provide AI computing power at scale, according to the report. Nebius founder and CEO Arkady Volozh said that "Nebius is continuing to deliver exceptional results," adding, "In Q2 we more than doubled revenue from the previous quarter, and our core business achieved positive Adjusted EBITDA ahead of plan," as quoted by Seeking Alpha. ALSO READ: Who is Intel CEO Lip-Bu Tan -- and why is Donald Trump demanding his resignation? Volozh highlighted that, "Because of this strong momentum, we are increasing our annualized run-rate revenue outlook for the year to $900 million to $1.1 billion," as quoted in the report. Nebius has raised its annualized run-rate revenue guidance for 2025 to between $900 million and $1.1 billion and the company is also in the process of securing more than 1 GW of power by the end of 2026 to support its expansion efforts, as reported by Tipranks. ALSO READ: Microsoft layoffs mount as it cuts 40 jobs - 3,160 fired in Washington since May, employees call it a cultural crisis Volozh explained that, "Demand for AI infrastructure -- compute, software and services -- is only going to get stronger as use cases multiply," adding, "We are aggressively scaling up capacity to capture this substantial opportunity and are in the process of securing more than 1 GW of power by the end of 2026," as quoted by the Seeking Alpha report. Seeking Alpha analyst Jack Bowman reacted to the positive outlook, saying, "Nebius hit a millstone, reporting over $1B in ARR, following a doubling of its revenue quarter over quarter," as quoted in the report. Bowman highlighted that, "This is the kind of growth necessary to justify its valuation, and is a great sign for shareholders that AI infrastructure demand isn't going anywhere anytime soon. Nebius relies on that demand to fund its hyper-expanding GPU cluster and data center business. Any future weakening of this demand could spell disaster for the stock, but this earnings report shows we are far off from there, and Nebius is still looking incredibly strong from a growth perspective," as quoted in the Seeking Alpha report. According to Tipranks, the latest analyst rating on NBIS stock is a 'Buy' with a $51.00 price target. While, as per Spark, TipRanks' AI Analyst, NBIS is a Neutral, the AI Analyst wrote that, "The overall stock score for Nebius is driven by financial performance challenges, particularly declining revenues and incomplete financial data. Although technical analysis shows bullish momentum and the earnings call highlighted strong growth and partnerships, the lack of profitability and valuation concerns weigh heavily on the score," according to TipRanks report. Why did Nebius stock rise? The stock surged after Nebius reported an impressive 600% increase in quarterly revenue, beating analyst expectations. What is Nebius' revenue forecast for 2025? The company expects its annual revenue to reach between $900 million and $1.1 billion by the end of 2025.

What's Going On With Nebius Group Stock Thursday? - Nebius Group (NASDAQ:NBIS)

Nebius Group N.V. NBIS reported second-quarter financial results before the market open on Thursday. Here's a look at the key details from the report. Q2 Earnings: Nebius Group reported second-quarter revenue of $105.1 million, up 625% year-over-year and up 106% on a quarter-over-quarter basis. The revenue increase was driven by continued strong demand from increasing AI use cases, growth in adoption and the expansion of the company's client base. Nebius Group reported positive adjusted EBITDA in its core AI infrastructure business and a group EBITDA loss of $21 million. The company ended the quarter with approximately $1.68 billion in cash. "In Q2 we more than doubled revenue from the previous quarter, and our core business achieved positive Adjusted EBITDA ahead of plan. Because of this strong momentum, we are increasing our annualized run-rate revenue (ARR) outlook for the year to $900 million to $1.1 billion," said Arkady Volozh, founder and CEO of Nebius. The company said it's also in the process of securing more than 1 GW of power by the end of 2026. "Demand for AI infrastructure -- compute, software and services -- is only going to get stronger as use cases multiply. We are aggressively scaling up capacity to capture this substantial opportunity," Volozh said. NBIS Price Action: Nebius Group shares were up 16.2% at $64.00 at the time of publication Thursday, according to Benzinga Pro. Read Next: Google Pledges $1 Billion For AI Training At US Universities, Aims To Expand Globally Photo: Shutterstock. NBISNebius Group NV$63.9216.0%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentumN/AGrowth13.26QualityN/AValue6.64Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Why Shares of Nebius Group Are Skyrocketing Today | The Motley Fool

It's not only semiconductor companies that are benefiting from investors' voracious appetite for AI stocks. Investors have their heads in the clouds today -- or rather, they have their minds on a leading cloud stock. Nebius Group (NBIS 18.62%), developer of a cloud platform uniquely suited for artificial intelligence (AI) computing, announced second-quarter 2025 earnings, and investors are thrilled with the results. As of 10:27 a.m. ET on Thursday, shares of Nebius were up 24.5%. Beating analysts' expectations for $101.2 million on the top line, Nebius posted second-quarter revenue of $105.1 million. Similarly, the company reported a $0.38 loss per share, narrower than the $0.42 loss per share that one analyst had been expecting. But it's management's outlook for the remainder of 2025 that has investors particularly excited. Because of what it credited in its letter to shareholders as "strong momentum," management upwardly revised the annualized revenue run-rate guidance for the end of 2025 to a range of $900 million to $1.1 billion from the original projection of $750 million to $1 billion. Addressing the company's strong prospects, CEO Arkady Volozh said: "Demand for AI infrastructure -- compute, software and services -- is only going to get stronger as use cases multiply. We are aggressively scaling up capacity to capture this substantial opportunity and are in the process of securing more than 1 GW of power by the end of 2026." It's not only semiconductor companies like Nvidia and Taiwan Semiconductor Manufacturing that investors are focusing on for AI exposure; they have recognized the appeal of AI hyperscalers like Nebius, which provide the crucial backbone for AI computing to occur. Shares have soared more than 140% since the start of the year, and they may be running out of room to race higher. For those who are eager to buy Nebius stock, it may be better to sit on the sidelines for the time being or consider a cloud computing exchange-traded fund to take a more conservative approach.

Why Nebius Group Stock Was Soaring Today | The Motley Fool

Nebius, which evolved out of the Russian tech giant Yandex to focus on cloud computing for generative AI, posted another quarter of skyrocketing growth, showing soaring demand for AI infrastructure. Revenue jumped 625% to $105.1 million, which topped estimates at $101.2 million. Nebius' adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss expanded from $21 million to $58.1 million as it invests in the massive opportunity in front of it. However, the company said that its core business achieved positive adjusted EBITDA in the quarter. CEO Arkady Volozh said: "Demand for AI infrastructure -- compute, software, and services -- is only going to get stronger as use cases multiply. We are aggressively scaling up capacity to capture this substantial opportunity and are in the process of securing more than 1 GW of power by the end of 2026." Looking ahead, Nebius raised its annual run-rate revenue guidance to $900 million-$1.1 billion, meaning the company should have annual contracts of around $1 billion by the end of the year, making the stock look more affordable than it might otherwise. Its growth demonstrates the tremendous opportunity in front of it, and the stock looks like a good bet to move higher as the AI infrastructure buildout continues.

Is This Underrated Artificial Intelligence (AI) Stock the Next Big Winner? | The Motley Fool

Nebius shares rocketed higher after it raised already lofty expectations. It could just be the beginning. Investors are getting to know artificial intelligence (AI) infrastructure company Nebius Group (NBIS 7.25%). It's been somewhat under the radar until Nebius recently released its second-quarter update. Updated revenue guidance boosted the stock after the report, but there may be more room for shares to run. Nebius founder and CEO Arkady Volozh summed up why with this comment from the quarterly press release: "Demand for AI infrastructure -- compute, software and services -- is only going to get stronger as use cases multiply." Nebius' history helps to explain why it's been such an underrated AI play. Nebius Group was formed after its original holding company sold the Yandex search engine assets to Russian investors following the invasion of Ukraine. The remaining assets, based in Amsterdam, focused on investing and scaling data center AI infrastructure. The newly formed company now has a global presence with hubs in Europe, North America, and the Middle East. It has four business segments: 2024 revenue totaled only $117.5 million, but that was an increase of 462% from the previous year. Investors have taken notice of the company's cloud infrastructure growth, though. Entering 2025, management boldly predicted it would drive revenue growth quickly enough to achieve an annualized revenue run rate of $750 million to $1 billion by the end of this year. After second-quarter earnings, that guidance was boosted, and investors noticed. Nebius reported second-quarter results on Aug. 7 and impressed investors with sales that rocketed 625% higher year over year and more than doubled from the first quarter. That led management to increase guidance to achieve an annualized revenue run rate of between $900 million and $1.1 billion by the end of this year. The stock soared after investors heard that update. Exponential revenue increases are being driven by its burgeoning AI infrastructure services. Just as importantly for investors, Nebius has a solid balance sheet. It held $1.68 billion in cash as of the end of Q2. Even with increasing capital expenditures to drive capacity expansion, that's an increase from $1.44 billion three months prior. Nebius raised $1 billion during the quarter by issuing convertible notes, but still has an enviable balance sheet with its growing cash balance. Nebius is addressing the growing role of AI as a transformative force by building specialized infrastructure needed for AI's development. The company is rapidly scaling infrastructure that includes extensive computing resources, optimized software and hardware, and collaborative ecosystems. Its cloud platform features large-scale GPU clusters in the U.S. and Europe. It offers customers of all sizes scalability, flexibility, and reliability, along with the performance capabilities of a supercomputer. In Q2, Nebius grew business on the enterprise side, adding well-known, large global technology companies, including Cloudflare and Shopify. The other business segments are also in growth mode. Avride has established partnerships with Uber Technologies, food-delivery platform Grubhub, and Hyundai. With AI increasingly playing a role in sectors beyond technology, such as healthcare, finance, entertainment, and robotics, the total addressable market (TAM) is huge. While the post-earnings stock surge might scare off potential new investors, Nebius' valuation remains reasonable as long as its revenue growth continues. A price-to-sales (P/S) ratio of about 16 based on an end-of-year revenue run rate isn't cheap. Though with tailwinds for needed cloud-based compute power and AI infrastructure, that revenue should continue to grow through 2026 and beyond. That could make Nebius stock look cheap in the rearview mirror.

This Artificial Intelligence (AI) Stock Has Room to Run -- Even After Its Recent Rally | The Motley Fool

This AI cloud infrastructure provider has jumped more than 150% in 2025, and its stunning growth rate suggests that more upside could be in the cards. Nebius Group (NBIS -2.41%) has been one of the hottest stocks on the market in 2025, rising a stunning 154% as of this writing on account of the outstanding growth that it has been delivering. Importantly, it looks like this cloud infrastructure provider has room for more upside even after its phenomenal rally. Nebius is a Dutch company that provides artificial intelligence (AI) cloud computing infrastructure. It operates AI data centers with large-scale graphics processing unit (GPU) clusters and provides tools and software solutions that customers can use to train AI models and run inference applications. The AI cloud infrastructure market that Nebius serves is growing at a breathtaking pace. Let's take a closer look at Nebius and see why this red-hot growth stock has room for more upside. Nebius has built its business by accumulating powerful AI GPUs from Nvidia and renting them out to customers. Developers can access a range of Nvidia GPUs such as the H100, the H200, and B200 at hourly rates from Nebius and run various AI models from Microsoft, Meta Platforms, DeepSeek, and others. Nebius' full-stack AI infrastructure allows customers to train and fine-tune AI models, develop custom AI applications, and run inference tasks. Importantly, customers can increase or decrease the usage of Nebius' platform according to their needs. The company's latest quarterly results make it clear that its business model is a hit with customers. Its revenue in the second quarter of 2025 jumped by more than 7x year over year to $105 million. Nebius also reduced its net loss by 49% owing to its focus on lowering the operating costs of data centers. Management points out that Nebius lowered its total cost of ownership by 20% by improving the hardware design of its data centers and investing in energy-saving solutions. Looking ahead, Nebius is focused on aggressively expanding its data center capacity so that it can corner a bigger share of the fast-growing cloud AI infrastructure market. The company aims to boost its data center capacity to 220 megawatts by the end of 2025 before ramping it up to 1 gigawatt by the end of next year. Nebius was sitting on $1.68 billion worth of cash at the end of the previous quarter, which it will use for capacity expansion. The company says that the demand for its solutions is outpacing supply, which is why it is important for it to keep investing in more capacity. Also, higher data center capacity will translate into more business for Nebius, which explains why the company has increased its annualized run-rate revenue (ARR) for 2025. It now expects ARR to land between $900 million and $1.1 billion this year as compared to the earlier estimate of $750 million to $1 billion. Analysts, meanwhile, are expecting Nebius' top line to jump by over 5x in 2025, followed by robust growth over the next couple of years as well. However, don't be surprised to see Nebius blowing past analysts' expectations in the current year and beyond. The company was originally guiding for $500 million to $700 million in revenue for 2025, and the increased ARR guidance indicates that it could exceed the midpoint of its original guidance range. So, a stronger-than-expected performance going forward should set Nebius up for more gains. Nebius' remarkable rally this year has brought the stock's price-to-sales ratio to 66. That's well above the U.S. technology sector's average sales multiple of 8.7. However, Nebius' outstanding growth explains why it is richly valued. The company is growing at an eye-popping pace and is relatively cheaper than some other AI stocks. What's more, the outstanding sales growth that the company is expected to deliver in the future is the reason why its forward sales multiples are much lower. Finally, investors shouldn't forget that Nebius is operating in a market that's expected to grow rapidly in the long run. Fortune Business Insights estimates that the cloud infrastructure-as-a-service market could clock an annual growth rate of almost 21% through 2032, generating more than $712 billion in annual revenue at the end of the forecast period. Nebius is currently growing at a much faster pace than the end market, and its capacity expansion efforts should allow it to become a key player in this space. All this makes Nebius a top AI stock to buy right now as its phenomenal growth is likely to result in more upside.